Security Benefit Introduces First Floating Rate Annuity

Security Benefit launched the RateTrack® Annuity, which is designed specifically to allow clients the opportunity to participate automatically in a rising interest rate environment versus being locked into a
long-term, uncompetitive rate.

 

RateTrack® is the industry’s first floating rate annuity, a new category of fixed annuities designed to add a component to a client’s portfolio that automatically responds to a rising interest rate environment. The RateTrack® Annuity features a unique interest crediting method that, unlike a typical multi-year guarantee annuity, offers an initial competitive interest rate and then the opportunity for higher interest rates over the life of the contract.

 

“Security Benefit is making good on our commitment to provide financial advisors and their clients with innovative retirement product solutions,” said Mike Kiley, CEO of Security Benefit. “The result is our new RateTrack® Annuity, an ideal solution for many retirement savers. RateTrack® offers a competitive fixed rate of interest today, along with the opportunity to receive a higher rate in future years without the risk to principal that consumers face with other fixed income investments.”

 

RateTrack® is built on three key concepts. First, its design offers a competitive first year rate similar to many other fixed investments and other multi-year guarantee annuities. Second, unlike most other fixed annuities, if interest rates increase in subsequent years, RateTrack® rates automatically adjust higher. And third, it offers a guaranteed minimum rate which protects principal value as interest rates rise, unlike fixed income investments that often have an inverse relationship to rising interest rates.

 

RateTrack® Annuity is a single premium deferred fixed annuity that offers clients a guaranteed fixed interest rate in combination with a floating rate pegged to the 3 Month ICE LIBOR USD Rate that may increase during the term of the contract. Contract owners receive a guaranteed base rate of interest that is set for the contract’s Guarantee Period in addition to the 3 Month ICE LIBOR USD Rate (subject to a cap), which resets annually on the contract anniversary date.

 

Over the past 30 years, U.S. interest rates have been on a steady decline and have remained at all-time lows, close to zero, since 2009. In December 2015, the Federal Reserve made its first rate hike for short term rates in nearly 10 years.

 

Security Benefit continues to anticipate the needs of advisors and their clients by developing an innovative new class of fixed annuities designed for the investment uncertainty that is likely to accompany rising rates.

 

 

 

Guarantees provided by annuities are subject to the financial strength of the issuing insurance company. Annuities are not FDIC or NCUA/NCUSIF insured; are not obligations or deposits of, and are not guaranteed or underwritten by any bank, savings and loan, or credit union or its affiliates; are unrelated and not a condition of the provision or term of any banking service or activity.

 

The Security Benefit RateTrack® Annuity, form ICC15 5300 (12-15) and 5300 (12-15), a single premium deferred fixed annuity, is issued by Security Benefit Life Insurance Company. Product features, limitations and availability vary by state.

 

ICE BENCHMARK ADMINISTRATION LIMITED MAKES NO WARRANTY, EXPRESS OR IMPLIED, EITHER AS TO THE RESULTS TO BE OBTAINED FROM THE USE OF ICE LIBOR AND/OR THE FIGURE AT WHICH ICE LIBOR STANDS AT ANY PARTICULAR TIME ON ANY PARTICULAR DAY OR OTHERWISE.

 

ICE BENCHMARK ADMINISTRATION LIMITED MAKES NO EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE FOR USE WITH RESPECT TO SECURITY BENEFIT RATETRACK® ANNUITY.